YOUR COUNCIL TAX EXPLAINED 2022/23 - For more information about council tax and ways to pay, visit
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YOUR COUNCIL TAX EXPLAINED 2022/23 For more information about council tax and ways to pay, visit sutton.gov.uk/counciltax
Contents A message from the Leader of the Council............................................ 3 What your council tax does for Sutton............................................................ 5 Our 2022/23 budget................................................................................................................... 6 How we calculate your council tax....................................................................... 8 How much council tax you will pay this year........................................ 11 Discounts and reductions.................................................................................................... 12 Empty properties and exemptions......................................................................... 13 Help to pay and financial support........................................................................... 14 How to pay................................................................................................................................................... 15 Manage your council tax online with MyAccount.......................... 16 2 | London Borough of Sutton | sutton.gov.uk/counciltax
A message from the Leader Dear resident, The pandemic has changed traditional patterns of work, life and commuting. The Council is moving quickly to respond to these changes and your council tax contribution is helping to make sure Sutton continues to be a great place to live, work and raise a family. At different stages of our lives, we need different services. Last year your council tax supported over 200 children in care, ensuring they had a safe place to live. Provided over 50,000 hours of care to people in their homes supporting over 1,900 residents to live independently, as well as providing support to over 325 families and carers living alongside people with dementia. This year your council tax will continue to support our most vulnerable. Help maintain our award winning parks and open spaces, as well as contribute to our work towards becoming a net zero carbon borough. We will continue to invest in our high streets helping Sutton’s local economy to grow, and through pioneering projects like The London Cancer Hub in Belmont, bring more new jobs to the local area. While we provide over 800 services, more than half of our budget supports older people, vulnerable children, people with learning difficulties and those with physical disabilities. But after well over a decade of reduced government funding and more people than ever before needing our help, we have been forced to take the tough decision to increase council tax by 1.99% this year. sutton.gov.uk/budget | London Borough of Sutton | 3
We appreciate that this increase comes at a particularly challenging time for many residents. But with demands on our services increasing, we have no alternative except to raise funds from our local council taxpayers in order to continue to provide these vital services. The government has assumed all local authorities will fund the increased costs of social care by charging an additional adult social care tax. It is up to each local authority whether they want to take the option to charge this tax. But with demands on our care services at record levels after the pandemic, we have been left with no choice but to apply the 1% tax for adult social care this year. This can only be used to support the most vulnerable older people in Sutton. The Mayor of London has also decided to increase the Greater London Authority (GLA) charge by 8.8%. This money goes towards the Metropolitan Police, The London Fire Brigade and Transport for London. This means residents in band D properties will pay an extra 57p a week in council tax, an extra 29p a week for the adult social care tax and an extra 61p a week for the GLA. Thank you for helping us to protect those needing our care, while delivering ambitious projects to bring new jobs, homes and improvements to Sutton. Yours faithfully, Councillor Ruth Dombey Leader of Sutton Council 4 | London Borough of Sutton | sutton.gov.uk/budget
What your council tax does for Sutton Here are just a few examples of how your council tax helps people in Sutton. “It’s nice to have a place where you can meet other new parents and have some fun too. It’s made me more confident as a mum.” Georgie, Sutton resident Our Children’s Centres offer activities for families, babies and toddlers that help with child development, as well as support and advice on a wide range of issues. “It’s a very good service that helps me a lot because I can’t get around so easily. It’s nice to get a friendly visitor and something hot to eat.” June, Meals on Wheels client Meals on Wheels is a frontline service for residents who need some help to live independently. The daily visits include wellbeing checks that spot when people need extra support and connect them with other services. “The feeling of belonging, of feeling safe in the environment you’re living in is so important for young people.” Craig, Willow Rise Children’s Home Manager Your council tax has helped us build a local children’s home - so our most vulnerable children and young people can stay rooted in our community at the most difficult time in their lives. Find out more about the vital services your council tax makes possible at sutton.gov.uk/my-sutton-my-story sutton.gov.uk/budget | London Borough of Sutton | 5
Our 2022/23 budget Where our funding comes from Like all local authorities, Sutton Council gets its funding from a range of sources including council tax, business rates, government grants and fees and charges. 74% 17% 9% Council Funding from Business tax central government rates How it’s spent All our income is invested in services for Sutton, split across the Council’s five departments. £22.7m £0.9m Resources Development, Growth and Regeneration £6.9m Public Health and Wellbeing £33.4m Environment, Housing £112.5m and Neighbourhoods Peoples A more detailed breakdown of this information is available on page 8. 6 | London Borough of Sutton | sutton.gov.uk/budget
To meet rising demands, we’re £2.4m £1.3m in children’s in adult investing an extra: and family services social care Our budget will also create more homes, better streets and improved open spaces. We’re investing: £7.5m £1m £30m £75m in roads, in our in high streets to build over pavements parks and and The 250 council and street open spaces London homes lighting Cancer Hub What does each Council department do? Peoples includes adult social care and supporting children. Public Health and Wellbeing includes our pandemic response, school nurses, libraries and museums, leisure centres, Sutton College, sexual health, substance support, transport for older people and Meals on Wheels. Environment, Housing and Neighbourhoods includes parks and open spaces, waste management, sustainability, roads, transport, housing regeneration, community safety, building planning and control, trading standards and emergency planning. Development, Growth and Regeneration includes economic recovery and growth, Sutton Town Centre regeneration, creating The London Cancer Hub, employment and skills. This department secures significant external funding to deliver these projects, which is not shown in this booklet. Resources includes asset management, human resources, IT, finance, legal, elections, communications and policy. sutton.gov.uk/budget | London Borough of Sutton | 7
How we calculate your council tax As in all London boroughs, your total council tax is made up of two parts: • An amount set by the Council based on how much money we need to deliver vital local services and meet our levying obligations (see below). • An amount set separately by the Greater London Authority, called the GLA precept. What are levies? Your council tax includes money the Council must collect on behalf of other organisations, known as levying bodies. These organisations fund their services by spreading the cost across each local authority in their area. The Council collects the money and pays it to the levying body. Unlike the GLA precept, levies must be included in the Council’s own budget calculations and are therefore included in the calculation of council tax. The amounts the Council has to pay this year are shown in the table below. 2021/22 2022/23 Environment Agency £170,000 £173,000 Lee Valley Regional Park Authority £174,000 £174,000 London Pensions Fund Authority £247,000 £247,000 Total £591,000 £594,000 What is the GLA precept? The GLA precept is the part of your council tax that goes towards funding services provided by the Greater London Authority. These include London-wide transport, policing and fire services. The GLA precept is set each year by the Mayor of London and is automatically added to your council tax bill. More information about the GLA precept is available at sutton.gov.uk/counciltax 8 | London Borough of Sutton | sutton.gov.uk/budget
We calculate the Sutton Council element of your council tax in two stages. First, we work out how much money the Council needs to deliver its services and meet its levying obligations (our gross expenditure). Then, we work out how much income we will generate and other funding we will receive (our gross income). Then, we work out the difference (our net expenditure) and what we need to raise in council tax. The next two tables show these calculations for 2022/23. Figures in brackets show income, savings or a surplus. 1. This table shows how much funding is needed to deliver Council services, by department, and the ring-fenced central government grants we receive towards this. Ring-fenced grants are grants that must be spent on certain services and cannot be spent elsewhere. 2021/22 2022/23 2022/23 2022/23 Net Gross Gross Net expenditure expenditure income expenditure Department services, other £m £m £m £m costs and ring-fenced grants Peoples 94.3 109.0 (10.2) 98.8 Public Health and Wellbeing 6.8 13.5 (6.6) 6.9 Environment, Housing and 33.4 51.4 (18.0) 33.4 Neighbourhoods Development, Growth and 0.0 1.0 (0.0) 0.9 Regeneration Resources 22.0 102.9 (80.1) 22.7 Ring-fenced Better Care 0.0 13.7 (13.7) 0.0 Funding Joint NHS/LA Grant Ring-fenced Public Health 0.0 10.5 (10.5) 0.0 Funding Grant Interest, levies, reserves and 9.5 10.5 1.9 12.4 other centrally held budgets Total 166.0 312.4 (137.3) 175.1 Non-ring-fenced core grants (15.8) (20.1) Total Council budget 150.3 155 sutton.gov.uk/budget | London Borough of Sutton | 9
2. This table shows where the remaining funding needed to deliver Council services comes from, including how much council tax we need to raise after other sources of funding have been accounted for. 2021/22 2022/23 Net expenditure Net expenditure £m £m Total Council budget 150.3 155.0 Top Up Grant (from government) (19.5) (19.5) Revenue Support Grant (from government) (6.8) (7.0) Business rates (17.5) (15.2) Collection Fund surplus or deficit - council tax 0.8 (1.4) Collection Fund surplus or deficit - NNDR 0.7 1.1 Council tax needed 108.1 113.0 How our budget has changed from last year The table below shows how pressures like inflation and increased demand have affected our budget this year, and where we have saved money or received more income. These changes have led to an overall increase in the amount we need to raise through council tax. £m Council tax needed 2021/22 108.1 Inflation 6.1 Additional costs from increased demand, continuing budget pressures 6.9 and income shortfalls Transfer to capital, provisions and reserves 1.1 Savings, efficiencies and cost reduction measures (5.5) Collection Fund surplus increase (1.9) Decrease in business rates income 2.2 Changes in grant income funding, business rates retention and (4.1) Revenue Support Grant Council tax needed 2022/23 113.0 10 | London Borough of Sutton | sutton.gov.uk/budget
How much council tax you will pay this year How much council tax you pay depends on how much your home was worth in April 1991, when it was valued and put into one of eight bands by the Valuation Office Agency. Your council tax bill tells you which band your home is in. The table below shows how much council tax each band will pay in 2022/23. Valuation Range of Sutton Sutton Greater Total band values Council Council ASC* London council general precept Authority tax A up to £40,000 £902.32 £122.70 £263.73 £1,288.75 B £40,001-£52,000 £1,052.71 £143.15 £307.68 £1,503.54 C £52,001-£68,000 £1,203.09 £163.60 £351.64 £1,718.33 D £68,001-£88,000 £1,353.48 £184.05 £395.59 £1,933.12 E £88,001-£120,000 £1,654.25 £224.95 £483.50 £2,362.70 F £120,001-£160,000 £1,955.03 £265.85 £571.41 £2,792.29 G £160,001-£320,000 £2,255.80 £306.75 £659.32 £3,221.87 H more than £320,000 £2,706.96 £368.10 £791.18 £3,866.24 *Adult social care precept If you think your property is in the wrong band, visit voa.gov.uk or call 03000 501 501. If you make an appeal, you will still need to pay your council tax while it is considered. Energy costs council tax rebate If you live in a property in bands A to D, you are likely to receive a £150 council tax rebate from the government to help with the cost of living. A limited amount of funding is also available to support people on low incomes in bands E-H. Go to sutton.gov.uk/ counciltax for more information. sutton.gov.uk/budget | London Borough of Sutton | 11
Discounts and reductions Depending on your income and who is living in your home, you may be able to apply for a discount on your council tax bill. Council tax discounts You may be eligible for a discount if you live alone (excluding any children under 18) or if you or someone you live with: • Has a disability and your home has been adapted to meet their needs. • Is a full-time student, student nurse, apprentice or Youth Training trainee. • Is severely mentally impaired. • Is a person caring for someone who is not their spouse, partner or child under 18. For further details on all discounts, including how to make an application, visit sutton.gov.uk/counciltax Council Tax Reduction scheme If you are on a low income or receive benefits, you may be eligible for a reduction on your council tax bill. Find out more at sutton.gov.uk/counciltaxreduction Important information Some discounts and exemptions are time-limited and will expire during the financial year. If your discount or exemption expires, we will send you a revised bill for the rest of the year. If your bill shows a discount or exemption that you are no longer entitled to, or your circumstances change so you are no longer entitled to a discount or exemption, you must tell us within 21 days. If you don’t, you may have to pay a penalty. Grounds for appeal against a decision regarding your council tax can be found on our website at sutton.gov.uk/counciltax 12 | London Borough of Sutton | sutton.gov.uk/budget
Empty properties and exemptions Empty and unfurnished properties, including those needing or undergoing major repairs or structural alterations, are not exempt from council tax. This follows a change in the law on 1 April 2013. Properties that are empty (vacant and substantially unfurnished) for more than two years are subject to a premium. From 1 April 2021, the following premiums apply: • For properties that have been empty for two or more years, but less than five years, the premium is 100%. This means you will be asked to pay 200% of the full council tax bill. • For properties that have been empty for five or more years, but less than 10 years, the premium is 200%. This means you will be asked to pay 300% of the full council tax bill. • For properties that have been empty for 10 years or more, the premium is 300%. This means you will be asked to pay 400% of the full council tax bill. If a premium becomes payable during the financial year, you will be sent a revised bill. As this premium applies to the property, a change of ownership or tenancy will not affect the premium. If the property had already been empty or substantially unfurnished for two or more years when you bought or leased it, you will have to pay the extra council tax. Some properties are still eligible for an exemption. For more information or to make an online application visit sutton.gov.uk/ counciltax sutton.gov.uk/budget | London Borough of Sutton | 13
Help to pay and financial support The cost of living crisis is affecting many people in Sutton. If you are worried about paying your council tax or other bills, help is available. Hardship Fund and Discretionary Housing Payment (DHP) If you are entitled to a Council Tax Reduction, Universal Credit or Housing Benefit and are struggling with council tax or rent, you can apply for a Hardship Fund payment for council tax or a Discretionary Housing Payment (DHP) for rent. These payments are designed for those who most need some extra help. Our budget is limited and we will prioritise helping to keep people in work and helping disabled and vulnerable people. We will also take levels of income and expenditure into account. Find out more at sutton.gov.uk/DHP Crisis loans and grants scheme The Council’s crisis loans and grants scheme can help to cover unexpected expenses in a crisis or emergency. Support that can be offered includes food vouchers, top-ups for pay-as-you-go gas and electric meters and furniture (beds, cookers, fridges and freezers). Find out more at sutton.gov.uk/crisisloansandgrants Citizens Advice Sutton Citizens Advice Sutton provides free, confidential, impartial information and advice on issues such as benefits, debt, housing and employment. Visit citizensadvicesutton.org.uk or call 020 8405 3552. Go to sutton.gov.uk/budget and click on “Get the support you need” for more information about the wide range of support available in Sutton. 14 | London Borough of Sutton | sutton.gov.uk/budget
How to pay Direct Debit You can help us save money, protect the environment and make your life easier by paying by Direct Debit and receiving your bill electronically. Set up your Direct Debit at sutton.gov.uk/directdebit Win £100 cash By paying by Direct Debit, you’ll also be in with a chance of winning our £100 prize draw every three months. Other ways to pay Go online: sutton.gov.uk/payforit Call the 24 hour automated payment line: 020 8770 7887 Pay with your Payzone card at Post Offices and newsagents that display the Payzone sign Online banking, standing order, BACS and CHAPS Payments. Please make payments to: Bank Sort Code: 30-80-12 Bank Account Number: 13740960 Want to pay your annual bill over 12 monthly instalments rather than 10? Email us at counciltax@sutton.gov.uk sutton.gov.uk/budget | London Borough of Sutton | 15
Manage your council tax online with MyAccount You can manage your council tax online using MyAccount, the Council’s online portal for council tax, business rates and Housing Benefit. With MyAccount you can: Set up a Sign up See past and Direct Debit for e-billing future payments Claim discounts Change your Get a PDF version and exemptions name or address of your bill Save yourself time by going online today. Sign up at sutton.gov.uk/myaccount For more information about council tax, visit sutton.gov.uk/counciltax
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